Summary and Review of Exporting

Summary and Review of Exporting

               Exporting is a process of selling goods and services to other countries. It is a way of internationalizing businesses through the expansion of markets (Vianna, 2016). Products must go through inspection under the custom authorities in both countries. Nonetheless, some states limit exportation by setting tariffs on other countries’ goods and services.

According to the U.S. News, governments discourage imports and exports in the view of creating economic barriers and for political reasons by setting tariffs and increasing custom duties. Some governments, however, encourage exports by offering subsidies to the local industries cutting costs on production, therefore providing cheap products. The article talks about U.S. President Donald Trump raising import duties on Chinese products affecting the export business.

According to China Daily, China is the leading country in the export business. China attributes her outstanding success in foreign trade to increasing demand for imports for the manufacturing sector, rising prices of significant products and the trading relationship with the United States. However, following Donald Trump’s tweet of increasing import duties on Chinese products, the newspaper reports of China’s decision to wage a trade war against the United States even though that is not their desire.

On this issue, CNN Business reports of China’s attempt to end the trade war. The report talks about the slowdown in China’s economy and its worsening effects if Beijing and Washington do not reach a trade deal. With negotiations on raising tariffs on Chinese goods taking place, U.S. President Donald Trump is reconsidering.

Similarity of Articles

There is a significant similarity between China Daily, U.S. News, and CNN, with all of them reporting about the export business between the United States and China. All the articles display the causes and effects that could arise with the trade war between the two superpowers.

Explicit and Implicit Issues

The specific issue that the newspaper articles are addressing is the raising of import duties and tariffs on Chinese commodities by the United States, which is likely to spur a trade war. Besides, the articles report on the effects of the U.S. President’s decision on both the economy of the United States and China (Nielsen, 2018). The implicit issue is the reason behind U.S. President’s choice of raising tariffs on Chinese commodities. None of the articles addresses this concern as the solution to the root cause may save the export business.

Implications and Recommendations for Conducting International Business

International business has numerous effects, such as legal issues and considerations. Language and cultural barriers are a business concern when doing business globally. Also, political issues tend to cause a strain in carrying out trade internationally. To overcome the challenges that international business faces, one may need to run their product descriptions through google translate. On legal issues, a country must accept and comply with the other country’s laws and regulations concerning international trade, such as customs duties and taxes (Nielsen,2018). Considering the impact of one’s business on the global market assists countries to come up with more innovative and creative ideas on improving their trade.

What could be the reason for raising tariffs on a specific country’s exports? What are the effects of raising taxes on exports to local producers and consumers?  There are no sources with such information. The information may be accessible on new macroeconomic books and journals.

References

Nielsen, B. B., & Raswant, A. (2018). The selection, use, and reporting of control variables in international business research: A review and recommendations. Journal of World Business, 53(6), 958-968.

Vianna, A. C. (2016). The impact of exports to China on Latin American growth. Journal of Asian Economics, 47, 58-66.